EU scrutinizes Nvidia’s ARM acquisition

© Nvidia.

Nvidia’s intention to acquire the ARM chip designer for US$ 40 billion, in cash and stock, was announced a year ago. The licensed ARM architecture is central to most processors’ function in phones, computers, game consoles and graphics cards. The problem is that Nvidia competes directly or indirectly with several ARM customers (including Intel, Samsung and Qualcomm) or is feuding with others like Apple. Therefore, the European Commission, the executive arm of the European Union, has taken an interest in the matter since one of its roles is to protect European competition law. In a press release, EU Executive Vice President and EU Competition Commissioner Margrethe Vestager said that Nvidia’s takeover of ARM could make it more difficult for other manufacturers to access ARM’s technology, hurting much of the semiconductor industry, which already faces other problems. The Commission will open an in-depth investigation into all possible ramifications that this potential acquisition could have on the market. The transaction is suspended pending the results of the investigation, which could be lengthy. Regulators in the United States and China may also formally review the transaction, according to the Financial Times.

⇨ The Verge, Jon Porter, Mitchell Clark, “EU opens formal investigation into Nvidia’s Arm acquisition.”

2021-10-27